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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we are seeing stabilization in the markets this morning,

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Speaker 3: but it follows another selloff on Wall Street.

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Speaker 4: The numbers are not pretty.

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Speaker 3: Tech stocks experienced their biggest one day plunge since twenty

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Speaker 3: twenty two, erasing one point one trillion dollars in market value.

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Speaker 3: Let's get the very latest with Bloomberg's John Tucker, John

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Speaker 3: and Nathan.

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Speaker 5: Monday's market plunge came as the Trump administration warrens of

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Speaker 5: a period of transition and detox for the economy. Economist

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Speaker 5: Denis Gartman sees it this way.

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Speaker 6: I think that the economy, no question is going into recession.

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Speaker 5: The Nasdaq one hundred index plunge three point eight percent.

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Speaker 5: Amy wou Silverman at RBC is waiting for the other

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Speaker 5: shoe to drop. Are we going to get to that

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Speaker 5: second tier of fear? The Nasdaq one hundred down twelve

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Speaker 5: point four percent from its market high. That's a correction.

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Speaker 5: The S and P five hundred flirting with correction, down

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Speaker 5: to eight point six percent from its record, said only

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Speaker 5: last month. Max Wasserman at Mira Mark Capital says investors

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Speaker 5: are still trying to gauge the impact of the Trump

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Speaker 5: trade war.

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Speaker 4: In the meantime an uncertainty.

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Speaker 3: Who wants to pay thirty forty times for these tech

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Speaker 3: earnings right now?

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Speaker 5: The Bloomberg Magnificent seven Index, an equal weighted gauge of

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Speaker 5: the biggest US tech stocks, tumbled five point four percent

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Speaker 5: to bring its round from a December record to more

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Speaker 5: than twenty percent. Tesla alone tumbled fifteen percent, widening its

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Speaker 5: lost this year to forty five percent, while Nvidia lost

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Speaker 5: five point one percent. That has to raised more than

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Speaker 5: one trillion dollars in market value in just two months.

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Speaker 5: The unpredictable terror policies also spurring risk aversion Government bonds

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Speaker 5: globally their rallying as bents on US exceptionalism start to fade.

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Speaker 5: In New York On John Tucker Bloomberg Radio.

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Speaker 2: All right, John, thank you. What we are seeing the

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Speaker 2: fallout from the recent US stock selloff. City Group is

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Speaker 2: downgrading its view on US equities while upgrading China to overweight,

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Speaker 2: citing attractive valuations, government support for the tech sector, and

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Speaker 2: a technology breakthrough that divergence in outlook between the US

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Speaker 2: and China is growing, with Chinese equities performing well this

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Speaker 2: year while US equities have lost four and a half

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Speaker 2: percent so far this year. Well, Nathan. When Donald Trump

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Speaker 2: took office on January twenty if, he was flanked by

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Speaker 2: some of the wealthiest people. Now new figures from Bloomberg's

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Speaker 2: Billionaire's Index show five of those billionaires have lost to

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Speaker 2: combine two hundred and nine billion dollars in wealth since

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Speaker 2: inauguration day. Elon Musk has been hit the hardest, losing

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Speaker 2: some one hundred and forty eight billion. Amazon founder Jeff

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Speaker 2: Bezos is down twenty nine billion. Google co founder Sergei

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Speaker 2: Brinn is worse off by twenty two billion, while Mark

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Speaker 2: Zuckerberg and LVMH boss Bernard Arnault are both down five billion.

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Speaker 4: Dollars and those losses Kring Coum is is it in.

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Speaker 3: Trump gets ready to meet today with the country's top

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Speaker 3: business leaders. Mary Nichol is a Bloomberg Markets Live strategist.

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Speaker 7: He needs to highlight his pro growth policies heading into

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Speaker 7: the Trump administration and after he won. Businesses were actually

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Speaker 7: quite optimistic about the future given deregulation and what some

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Speaker 7: of his policies would be that would be favorable to businesses.

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Speaker 4: But businesses are now worried.

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Speaker 7: They're now worried about the outlook of the economy, they're

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Speaker 7: worried about tariff. So he'll need to address these recession

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Speaker 7: concerns and that his plans will be more limited. And

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Speaker 7: it really is a short lived adjustment period, because otherwise

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Speaker 7: you could see this spiral into something even bigger and

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Speaker 7: deeper losses for the markets.

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Speaker 3: Bloomberg's Mary Nichola notes that President Trump will meet today

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Speaker 3: with the Washington based Business Roundtable. Cisco CEO Chuck Robbins

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Speaker 3: chairs the organization, JP Morgan Chases, Jamie Diamond, and City

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Speaker 3: Groups Jane Fraser among the bank leaders on the round

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Speaker 3: tables board of directors.

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Speaker 2: Nathan, Now, let's get to the latest on the war

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Speaker 2: in Ukraine. In Russia says it shot down three hundred

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Speaker 2: and thirty seven Ukrainian drones overnight, including seventy four aimed

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Speaker 2: at the capital Moscow. It appears to be the largest

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Speaker 2: attack on Russian territory in the three year war, and

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Speaker 2: it comes as Ukrainian officials meet with the US and

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Speaker 2: Saudi Arabia to discuss ways to end the conflict again.

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Speaker 2: Those talks are underway right now, but Bloomberg's Greg Sullivan

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Speaker 2: reports the US is downplaying anything major coming out of

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Speaker 2: this meeting.

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Speaker 8: We saw a Secretary of State Marco Rubio come out

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Speaker 8: and say, look, look, we're not looking for a major

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Speaker 8: breakthrough here. The US is basically in a position where

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Speaker 8: it's listening, trying to see what's possible, especially in terms

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Speaker 8: of concessions. He did say that he expects concessions from

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Speaker 8: both sides, and that could include territorial concessions from Ukraine,

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Speaker 8: which will be quite hard for them to swallow.

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Speaker 2: And as President Trump pushes for a ceasefire, Bloomberg's Greg

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Speaker 2: Sullivan reports he's sending Middle East Envoy Steve Wikoff to

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Speaker 2: Moscow this week to meet with Russian President Vladimir Putin Karen.

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Speaker 3: Talks between the US and China on trade maybe getting stuck,

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Speaker 3: sources tell Bloomberg News discussions are bogged down at lower levels,

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Speaker 3: with both sides talking past each other on how to proceed.

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Speaker 3: Officials in Beijing say the US has not given detailed

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Speaker 3: steps on what it needs to do about fentanyl to

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Speaker 3: have tariffs lift it. President Trump's team says it has

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Speaker 3: been clear that it wants China to stop sending precursor

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Speaker 3: chemicals to Mexico, to give smugglers the death penalty, and

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Speaker 3: to run a front page article in the People's Daily

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Speaker 3: newspaper condemning the fentanyl trade.

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Speaker 2: Well in Washington, Nathan, a stop gap funding bill, or

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Speaker 2: clean cr looks likely to pass Congress today and avert

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Speaker 2: of government shutdown on Friday. Bloombergs Amy Morris has the

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Speaker 2: details from Washington.

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Speaker 9: The Republicans spending bill is designed to keep government agencies

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Speaker 9: open through September thirtieth. Representative Don Byer, a Democrat from Virginia,

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Speaker 9: talked about the options and the worries that the President

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Speaker 9: will unilaterally delay or cancel appropriations called impoundment.

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Speaker 3: Unless there are meaningful guardrails to keep Trump from impounding it.

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Speaker 4: We should vote note in the Democrats in the Senate

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Speaker 4: and hope with some Republicans of the center.

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Speaker 9: Virginia Democratic Representative Don Byer on Bloomberg's balance of power.

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Speaker 9: House Republicans could pass this on their own if they

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Speaker 9: get enough votes from their own caucus, but even after

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Speaker 9: it passes the House, it still has to get through

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Speaker 9: the Senate. In Washington, Amy Moore as Bloomberg Radio.

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Speaker 4: Amy thank you.

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Speaker 3: A federal judges rule elon Musk's Government Efficiency Project must

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Speaker 3: comply with records demands from a public interest group. The

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Speaker 3: ruling rejects the Trump administration's position that the office created

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Speaker 3: by the president is exempt from US transparency law. The

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Speaker 3: decision would mean the Department of Government Efficiency is required

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Speaker 3: to disclose emails, memos, notes, and other internal records about

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Speaker 3: its operations, staff, and structure.

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Speaker 1: Well.

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Speaker 2: Speaking of Musk, as mentioned earlier Nathan, his personal wealth

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Speaker 2: has taken a big hit recently. In fact, with yesterday's

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Speaker 2: fifteen percent decline, Tesla's shares have lost more than half

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Speaker 2: of their value since mid December. This morning, Musk is

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Speaker 2: getting some support from Donald Trump. The President says that

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Speaker 2: he will buy a new Tesla as a show of

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Speaker 2: confidence and support for the CEO. Musk, who is now

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Speaker 2: the face of the president's efforts to cut the size

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Speaker 2: of the US government, responded with a simple thank you

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Speaker 2: on x and shares a Tesla there hire this morning

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Speaker 2: at more than four and a half percent.

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Speaker 3: As for some other stocks on the move this morning,

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Speaker 3: Karen worsh watching shares of Oracle.

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Speaker 4: They are down almost two percent.

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Speaker 3: The company reported disappointing quarterly results and gave a sales

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Speaker 3: and profit forecast for the current quarter that fell short

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Speaker 3: of analyst estimates.

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Speaker 2: Shares A Delta are down almost ten percent. The airline

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Speaker 2: cut its profit expectations for the first quarter roughly by

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Speaker 2: half on weakening travel demand. The carrier also said economic

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Speaker 2: volatility and concerns of our flight safety have weighed on

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Speaker 2: the US industry in recent weeks. But it's time now

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Speaker 2: for a look at some of the other stories making

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Speaker 2: news in New York and around the world. And for

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Speaker 2: that we're joined by Bloomberg's Michael Barr Michael, good Morning.

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Speaker 10: Good Morning caaren. A federal judge has temporarily blocked the

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Speaker 10: deportation of Mackmood Khalil, the pro Palestinian activists and Columbia

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Speaker 10: University graduate, was arrested by ICE agents over the weekend.

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Speaker 10: He helped organize last year's pro Palestinian protests on the

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Speaker 10: Columbia campus. Meanwhile, hundreds demonstrated in Lower Manhattan Monday to

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Speaker 10: protest Khalil's arrest. Demonstrators say the arrest violates free speech

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Speaker 10: rights and is unconstitutional. At a press conference, Professor Unan

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Speaker 10: Cohen of Columbia Center's Jewish and Israel Studies compared Khalil's

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Speaker 10: arrest to tactics used to detain Palestinians in Gaza. As

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Speaker 10: an Israeli American, I'm extremely troubled that such practices have

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Speaker 10: been important to the United States and manifests themselves on

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Speaker 10: our campus. Meanwhile, President Trump said the arrest was in

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Speaker 10: furtherance of his policies against anti Semitism. Israeli negotiators are

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Speaker 10: in Cutter and restarting talks with Moss on what phase

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Speaker 10: two of the ceasefire agreement will look like. Eighty Alexander

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Speaker 10: says his son Eden is still being held in Gaza

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Speaker 10: and hopes the negotiators will come to a consensus.

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Speaker 11: We have to be back into the Surboggan and table

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Speaker 11: and keep talking and get everybody out as soon as possible.

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Speaker 10: It comes as Israel has cut off electricity to Gaza.

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Speaker 10: Police in Montvale, New Jersey, are investigating a bus crash

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Speaker 10: on the Garden State Parkway that left several children injured,

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Speaker 10: including one in critical condition. Official say thirty one people

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Speaker 10: were on board. The bus was heading to New York

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Speaker 10: State when it flipped last evening global news twenty four

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Speaker 10: hours a day and whenever you want it with the

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Speaker 10: Bloomberg News.

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Speaker 4: Now, I'm Michael Barr, and this is Bloomberg Karen.

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Speaker 2: All right, Michael Barr, thank you. It's time now for

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Speaker 2: the Bloomberg Sports out Date, brought to you by Tri

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Speaker 2: State Houdie.

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Speaker 6: Here's John Stanshawer.

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Speaker 4: John, good morning, Good morning.

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Speaker 12: Care of the Yankees hopes for a second straight American

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Speaker 12: League Pettant Delta severe blow. Garrett Cole will spend today

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Speaker 12: having season ending Tommy John elbow surgery. He was on

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Speaker 12: the vand last week in Tampa didn't go well, gave

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Speaker 12: up two home runs. He had an MRI, then got

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Speaker 12: a second opinion. Now wi see Cole in a Yankee

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Speaker 12: uniform until sometime in the summer of twenty twenty six.

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Speaker 12: The Jets having new quarterback. It's twenty six year old

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Speaker 12: Justin Field. Spent three years in Chicago. This past season

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Speaker 12: with Pittsburgh Steelers wanted him back. He chose instead to

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Speaker 12: throw passes to his former Ohio State teammate, Garrett Wilson.

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Speaker 12: It may end up being a swap of quarterbacks with

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Speaker 12: the Jets. Fields is replacing Aaron Rodgers word as Rogers

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Speaker 12: could be closestunting with the Steelers. Sam Darnold cashed in

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Speaker 12: on his breakout season in Minnesota, three year, one hundred

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Speaker 12: million dollars deal to play QB in Seattle.

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Speaker 4: The Giants still the end of quarterback. They did add.

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Speaker 12: Three free agents and they re signed white out Darius Slayton.

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Speaker 12: The next with a quick start in Sacramento, Big.

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Speaker 11: Bride on heaters, somebody pull out the fire extinguisher. Douce

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Speaker 11: now with fifteen that it comes to smak Prime still

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Speaker 11: has not missed the shotout here tonight lot givin go

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Speaker 11: when the Kings have given up thirty seven year in

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Speaker 11: the first quarter.

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Speaker 12: On NBA TV. The next coast at all night, they've

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Speaker 12: beat z acra Mana one thirty three to one oh

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Speaker 12: four to three. Nick scored more than twenty McBride Carling

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Speaker 12: Anthony Towns and og Anenobian Brooklyn and next end of

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Speaker 12: a seven game losing, the Street beat the Lakers one eleven,

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Speaker 12: one oh eight. The Celtics beat the Jazz one four.

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Speaker 12: John Stashley that we're Bloomberg Sports. Karen Lincoln.

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Speaker 1: Coast to coast on Bloomberg Radio nationwide on Sirius XAM

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Speaker 1: and around the world on Bloomberg dot com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 4: Good morning.

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Speaker 3: I'm Nathan Hager, and we are seeing futures bounce back

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Speaker 3: this morning from one of the biggest multi day selloffs

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Speaker 3: on Wall Street in years. The SMP five hundred just

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Speaker 3: yesterday fell two point seven percent, nearing a correction. The

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Speaker 3: tech heavy Nasdaq is already there, and many analysts are

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Speaker 3: readjusting their bullish views, with tariffs and government spending cuts

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Speaker 3: adding to fears that the US could be headed for

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Speaker 3: an economic slowdown. Joining us this morning is Baired investment

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Speaker 3: strategist Ross Mayfield.

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Speaker 4: Ross, Good morning. Are you changing your view on this economy?

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Speaker 6: Yeah, I think you have to a little bit. Right.

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Speaker 6: You come in with and then you take a look

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Speaker 6: at what's actually occurring, and you have to readjust the bit.

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Speaker 6: I wouldn't say that we're in the recession camp yet,

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Speaker 6: but I think an economic slowdown is likely, if only

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Speaker 6: because you know, we're at the middle of the late

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Speaker 6: point of the cycle and the Trump administration is clearly

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Speaker 6: more bite than bark when it comes to the tariffs.

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Speaker 6: So far, so you kind of have to readjust your

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Speaker 6: priors for what growth could be.

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Speaker 3: Now, what do you make of the selloff that we've

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Speaker 3: seen over the last few days, this eight point six

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Speaker 3: percent plunge in the S and P five hundred in

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Speaker 3: just the last few days.

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Speaker 6: Yeah, I mean, I think the first obvious thing is

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Speaker 6: to look at the economic growth scare, the potential for

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Speaker 6: tariffs and broader and wider tariffs and previously we're expected,

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Speaker 6: and then also look at well, you know, the set

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Speaker 6: has the dry powder to come to the rescue, but

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Speaker 6: are they going to be willing to if they think

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Speaker 6: tariffs are inflationary? So all that makes sense, but then

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Speaker 6: you have to look at the driver of the selloff

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Speaker 6: and look to the mag seven and kind of wonder

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Speaker 6: how big Tech is caught up in any of that.

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Speaker 6: I mean, they're largely economic growth agnostic, they're not particularly

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Speaker 6: tariff sensitive, So what's driving that? I mean, you could

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Speaker 6: say valuation, You could take a look at the Japanese

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Speaker 6: yen and see the rise there, and look at the

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Speaker 6: carry trades all off we saw last August, But the

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Speaker 6: reality is it's probably just a combination of all the above.

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Speaker 6: A bad moment for markets. But a healthy correction that's

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Speaker 6: going to reset sentiment a bit as well.

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Speaker 3: Does that point to a buying opportunity for the tech

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Speaker 3: stocks that had been fueling the rally for so long?

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Speaker 6: I think it totally depends on time frame. I mean,

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Speaker 6: technically they look pretty broken, or at least most of

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Speaker 6: them do. But over a one plus year time horising, yeah,

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Speaker 6: would I would still be adding to secular growth themes

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Speaker 6: like AI. I think if we're hitting a period where

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Speaker 6: US economic growth is coming back to trend and we're

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Speaker 6: still in this higher for longer rate environment, I want

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Speaker 6: to be buying the high quality companies that are still

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Speaker 6: bringing their own kind of growth themes to the table.

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Speaker 6: I still very much think AI is one of those.

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Speaker 6: Over the next half decade decade plus, you just have

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Speaker 6: to have the time horising to ride out what could

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Speaker 6: be more weakness in the near term.

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Speaker 3: Talking about timing, we heard from Kevin Hassett over at

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Speaker 3: the White House saying that he expected a negative first

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Speaker 3: quarter with tariffs and President Biden's policies, but he says

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Speaker 3: the second quarter is going to take off with tax cuts.

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Speaker 4: Should investors be pricing that in?

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Speaker 6: You know, I do think that the potential for tax

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Speaker 6: cuts has been pushed to the back burner. You know,

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Speaker 6: the first Trump administration, this this calculus was reversed. We

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Speaker 6: got the tax cuts. In twenty seventeen, markets had one

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Speaker 6: of the best and kind of calm mist years in

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Speaker 6: recent memory, and then twenty eighteen was very valid on

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Speaker 6: the back of the trade war. I mean, look, if

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Speaker 6: we got to the second quarter and a lot of

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Speaker 6: the trade and tariff policy was at very least settled, right,

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Speaker 6: I do even think that most companies would be fine

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Speaker 6: with tariffs or you know, some level of import duty

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Speaker 6: if they just knew the rules of the game and

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Speaker 6: then could move on to focus on the things about

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Speaker 6: the Trump administration that they liked so so much in

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Speaker 6: the you know, immediate post election euphoria, which was deregular,

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Speaker 6: the potential for tax cuts, lower energy prices. So if

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Speaker 6: we could just get some tear of certainty and move

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Speaker 6: on to the second quarter, I think the market would

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Speaker 6: welcome that for sure.

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Speaker 3: In our last thirty seconds, really interesting call from City

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Speaker 3: Group downgrading US stocks raising China to overweight.

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Speaker 4: Is that the right call?

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Speaker 6: I mean, that's certainly the momentum trade right now, You've

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Speaker 6: got a lot of momentum behind Europe and China, and

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Speaker 6: you're losing momentum in the US. But I still think

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Speaker 6: over a one plus your time horison. If you're thinking strategically,

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Speaker 6: US is where the economic growth is and so far

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Speaker 6: most of them move up across the seas and at home.

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Speaker 6: Down is about valuation and not relative earnings growth, So

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Speaker 6: I with them.

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Speaker 4: And I'm Nathan Hager.

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